National or Regional Currency: Pakistani Rupee, PKR
Population: 174,578,558 (July 2009 est.)
Area: total: 796,095 sq km
Status: 27th largest economy in the world in terms of purchasing power, and the 45th largest in absolute dollar terms.

Qamar hints at Rs9.43/liter hike in POL prices

The committee was told that the fuel prices may see rise up to Rs.9.43 a liter if government drops subsidy from POL products.

Officials of petroleum ministry, attending the meeting, briefed committee that POL products’ prices may inflate by more than 13 percent upon withdrawal of subsidy.

Diesel prices will have to be hiked by Rs.9.20 per liter, officials told committee, adding that if government continues subsidy on POL products so Rs.12 billion will have to be spent additionally till the end of February.

WASHINGTON: US Secretary of State Hillary Clinton, who has pushed Pakistan hard to improve its fiscal management, said on Thursday that Islamabad’s decision to reverse an unpopular fuel price increase was a “mistake”.

“We have made it clear, as I did in a meeting with their ambassador, that we think it is a mistake to reverse the progress that was being madeto provide a stronger economic base for Pakistan and we will continue to express that opinion,” Clinton told reporters during an appearance with visiting Japanese Foreign Minister Seiji Maehara.

Earlier, Mark Toner, a State Department spokesman, told reporters said the United States signaled it opposes the Pakistani government’s reversal of controversial fuel price hikes. “What we’ve said all along is that the reforms that the government of Pakistan is undertaking are difficult, but they’re important for its long-term economic stability,” .

“Well, that is our belief and that is our position,” Toner said when asked if it was a “bad thing” for Pakistan to reverse the fuel price increases. “Our position is that ... Pakistan needs to undertake difficult economic reforms that are going to require some pain, frankly, politically,” Toner said when asked to spell out what he meant by the US position. “But beyond that, I’m not going to weigh into what is a domestic political debate in Pakistan,” Toner said